United Parcel Service, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

EARNINGS PER SHARE

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2011

NOTE 12. EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2011 and 2010 (in millions, except per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Numerator:
Net income attributable to common shareowners	$	1,042	$	991	$	2,990	$	2,369

Denominator:
Weighted average shares		974		990		982		991
Deferred compensation obligations		1		2		2		2
Vested portion of restricted shares		2		2		2		1

Denominator for basic earnings per share		977		994		986		994

Effect of dilutive securities:
Restricted performance units		2		3		3		3
Restricted stock units		7		6		6		6
Stock option plans		1		1		1		—

Denominator for diluted earnings per share		987		1,004		996		1,003

Basic earnings per share	$	1.07	$	1.00	$	3.03	$	2.38

Diluted earnings per share	$	1.06	$	0.99	$	3.00	$	2.36

Diluted earnings per share for the three months ended September 30, 2011 and 2010 exclude the effect of 9.8 million shares of common stock each year (7.4 and 11.5 million for the nine months ended September 30, 2011 and 2010, respectively), that may be issued upon the exercise of employee stock options because such effect would be antidilutive.